Loans extended by Japanese banks operating in South Korea are estimated at nearly 25 trillion won as of May.

This is according to the Financial Services Commission on Tuesday, which said the total amount of loans extended by Japanese lenders stood at 24-point-seven trillion won in late May, up from 21-point-nine trillion in late March.

As of May, loans from Japanese banks accounted for 25 percent of total loans provided by multinational banks in Korea hailing from 16 countries. 

Observers call for preparations against possible contingencies in the wake of heightened tensions between South Korean and Japan, though no retaliatory moves have been made in the finance sector.